The Securities and Exchange Commission has charged five people with illegally advertising the $2 billion Bitconnect Ponzi scheme.

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According to the SEC, five people “promoted a global unregistered digital asset securities offering.”

After three years and several memorable memes, the Securities and Exchange Commission has announced that five people will face prosecution for marketing the Bitconnect Ponzi scam.

“The SEC’s complaint alleges that these promoters offered and sold the securities without registering the securities offering with the Commission, and without being registered as broker-dealers with the Commission, as required by the federal securities laws,” the release reads.

Trevon Brown, Craig Grant, Ryan Maasen, and Michael Noble are claimed to have “advertised the merits of investing in BitConnect’s lending program to prospective investors, including by creating “testimonial” style videos and publishing them on YouTube, sometimes multiple times a day.” Influencers and agents were compensated on a commission basis for their promotional activities.

According to the press announcement, Joshua Jeppesen will act as a “liaison between BitConnect and promoters.”

Trevon Brown (better known as Trevon James) tweeted shortly after his release saying he did not contest the allegations and that the community will “rally” around him.

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“We will seek to hold accountable those who illegally profit by capitalizing on the public’s interest in digital assets,” said Lara Shalov Mehraban, Associate Regional Director of SEC’s New York Regional Office in the release.

The company, which collapsed in 2018, was widely accused on being a ponzi scheme from several analysts and observers, including Ethereum co-founder Vitalik Buterin. Last year, an Australian man was charged in connection with the company’s fraud. Many will be familiar with the project due to a now-legendary presentation from investor Carlos Matos:

Several crypto attorneys have rushed to Twitter to speculate on the case’s long-term implications. Even though the S.E.C. is targeting a known scam in Bitconnect, Gabriel Shapiro believes it may serve as a “blueprint” for action against other DAOs.

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